Skillz (SKLZ, Financials) shares fell 8.8% to $4.66 as of 12:18 p.m. GMT-4 on Friday, extending a premarket decline of about 10% following weaker-than-expected fourth-quarter profit and revenue, according to a company statement.
The average income per paying monthly active user dropped 7% year-over-year to $68.1 in the quarter according the mobile gambling platform. The corporation withheld revealing the overall active user count.
According to Skillz CEO Andrew Paradise, rivals AVA Games, Papaya Gaming, and Voodoo Games have been fooling American gamers out of billions of dollars by utilizing automated bots to rig match outcomes, fool them. Seeking legal action to defend its business from these behaviors, the company has sued Papaya Gaming and Voodoo Games in the Southern District of New York.
CFO Gaetano Franceschi said Skillz is striving toward profitable sales growth and positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The firm wants to strike a mix between investments meant to improve its long-term financial situation and cost-cutting initiatives.
Underperformance of the S&P 500, down 4.2% during the same time, Skillz shares have down 12.5%, year to date.
